SEBI rejects settlement pleas by 13 Adani-linked FPIs - What went wrong?
SEBI rejected settlement proposals from 13 Adani-linked FPIs because their terms did not match SEBI's conditions, and some investors refused to provide required information.Summary
India's capital markets regulator SEBI rejected settlement proposals from 13 foreign portfolio investors (FPIs) holding significant stakes in Adani Group companies. The FPIs' applications were rejected because their proposed terms did not align with SEBI's settlement terms, and some investors were unwilling to provide information SEBI considered essential for settlement. SEBI's investigation, which flagged these 13 FPIs in October 2020, examined whether the investors were genuine public shareholders or fronts for Adani Group promoters. The probe gained global attention after Hindenburg Research accused the Adani Group of round-tripping and market manipulation in January 2023. Following the Supreme Court's January 2024 directive for SEBI to conclude its investigations, SEBI is now considering changes to settlement rules that could provide rejected applicants another opportunity to resolve their cases.
(Source：Et Now)